The Saratogian (Saratoga, NY)

SEEKING SOLUTIONS

Area restaurant industry feeling sting of COVID 19 pandemic

- By Lauren Halligan lhalligan@digitalfir­stmedia.com

As restaurant­s around the country feel the effects of the COVID-19 crisis, New York state’s restaurant industry is among the most impacted, losing $1.9 billion and more than 250,000 jobs, according to a recent report by the National Restaurant Associatio­n.

A nationwide survey of more than 4,500 restaurant operators, conducted from March 23 through 26, found that an estimated $25 billion in sales and more than 3 million jobs were lost in the industry in the first 22 days of March 2020.

In New York, an estimated $1.9 billion in sales and more than 250,000 jobs were lost in the same time period.

“While our industry nationwide is deeply impacted, New York State restaurant­s are among the hardest hit,” New York State Restaurant Associatio­n president and CEO Melissa Fleischut said in a press release. “Now that New York has become the global epicenter of the pandemic, we fear the devastatin­g and lasting impact on our restaurant­s, especially in New York

City, the culinary capital of the world.”

New York state restaurant operators reported a 58 percent decline in sales over the same period last year, compared to the nationwide 47 percent decline.

The state’s number of employees laid off was also higher than the country’s average. Nationwide, 70 percent of restaurant­s laid off employees and another 50 percent expect more cuts in the next 30 days. In New York, 78 percent of operators laid off employees and 52 percent expect more cuts in the next 30 days.

“While our industry nationwide is deeply impacted, New York State restaurant­s are among the hardest hit.”

— New York State Restaurant Associatio­n president and CEO Melissa Fleischut

Nearly half of the state’s restaurant­s, a total of 48 percent, have temporaril­y closed, compared to the nation’s 44 percent of restaurant operators that have reported temporary closures.

An estimated three percent of restaurant operators nationwide, and five percent in New York, have permanentl­y closed their doors.

Yet another 11 percent, and 12 percent in New York, anticipate permanentl­y closing their restaurant within the next 30 days.

“Many restaurant­s have already closed and will never reopen, and restaurant employees are out of work, trying to figure out what’s next,” Fleischut continued.

While the restaurant industry has been negatively impacted in the first few weeks of the COVID-19 crisis, restaurant operators

New York National Guard members help deliver food donated from the Regional Food Bank of Northeaste­rn New York to those under quarantine. and employees are preparing for continued hardship.

“Our members are being tested across the state like never before. They’ve had to adapt on the fly as this situation isn’t changing by the week or day; it is changing by the hour or minute. Many have pivoted or revamped their business models to stay afloat for the time being. Some attempted that and decided to close,” Fleischut added, urging all to utilize takeout and delivery from their favorite restaurant­s during this difficult time. “Restaurant­s are an important piece of the local economy and must be around to assist with the eventual recovery.”

The New York State Restaurant Associatio­n is supporting its members by working with Governor Andrew Cuomo in advocating for a delay in sales tax payments, a moratorium on evictions and adjustment­s in State Liquor Authority regulation­s.

This has allowed some operators to keep their doors open during this crisis.

Looking ahead, Fleischut said in the release, “We’ll continue to seek immediate assistance for the industry and find ways to ensure long-term viability.”

Saratoga County Chamber of Commerce president Todd Shimkus said the local restaurant industry has definitely taken a huge hit.

However, area leaders are doing what they can to keep businesses afloat.

The chamber’s annual Saratoga County Restaurant Week, which was scheduled to begin on

March 20, transforme­d into a longer Saratoga County Take Out initiative to help restaurant­s promote their take out and delivery services. More than 130 restaurant­s across Saratoga County are currently participat­ing.

“In talking with participat­ing restaurant­s, it’s helping them to keep a few people employed and their facilities open for business. We’ve actually added restaurant­s to the promotion which tells us that its working,” Shimkus shared.

The chamber - in partnershi­p with the Saratoga County Prosperity Partnershi­p, Saratoga Economic Developmen­t Corporatio­n, Discover Saratoga, the Saratoga Springs City Center, and the Saratoga Springs Downtown Business Associatio­n — aims to keep restaurate­urs informed via email of the various programs being offered to the local owners and their employees who have become unemployed through no fault of their own.

“Our hope is that the social distancing that everyone has been doing will help to shorten the amount of time these restaurant­s are closed. The sooner they can be safely reopened the better obviously,” Shimkus said. “Our partnershi­p is already talking about special promotions and reopening celebratio­ns we might organize for when this social distancing is a thing of the past.

“If a restaurant is in dire need of support or has a questions, they can call any one of the six partners and we’re all going to do everything we can to help.”

“Our local restaurant industry is most certainly feeling the financial impact of the COVID-19 pandemic,” Rensselaer County Regional Chamber of Commerce president Kate Manley said. “Right now we’re focused on doing everything we can to assist our member eateries in promoting their takeout and delivery options, while also serving as a resource for them in helping to navigate the availabili­ty of Small Business Loans and federal grants that will help them mitigate losses.

“It is a vital industry tied to many jobs in our local economy that we must step up as a community to protect.”

 ?? LAUREN HALLIGAN — MEDIANEWS GROUP FILE ?? New York State Restaurant Associatio­n CEO Melissa Fleischut speaks at a 2018 press conference at Longfellow­s in Saratoga Springs.
LAUREN HALLIGAN — MEDIANEWS GROUP FILE New York State Restaurant Associatio­n CEO Melissa Fleischut speaks at a 2018 press conference at Longfellow­s in Saratoga Springs.
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PHOTO PROVIDED
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